Stonegate Reaches 200-Pub Conversion Milestone in Strategic Estate Overhaul

Stonegate Group has achieved a significant landmark in its ongoing estate transformation programme, successfully converting 200 managed pubs to alternative operating models over a two-year period.

The pub giant, which operates approximately 4,300 venues across the UK, has been systematically restructuring its portfolio since chief executive David McDowall assumed leadership in 2023. The conversion strategy has seen managed sites transition to Leased and Tenanted (L&T) and Craft Union operational frameworks.

The company reports that data analytics, market intelligence and localised knowledge have driven conversion decisions, with the programme generating an average profit improvement of £110,000 per converted venue.

Stonegate’s managed estate has contracted from 800 sites to 550 over the past 24 months, representing a strategic shift towards franchise-style operations that the company believes better serves local communities.

McDowall emphasised the rationale behind the transformation: “Our strategy centres on positioning each pub for sustained success. Today’s consumers increasingly prioritise the individuals serving them rather than corporate branding. Through collaboration with entrepreneurial publicans, we’re developing venues that demonstrate greater resilience, stronger community connections and enhanced ability to adapt to changing consumer preferences.”

The milestone was reached this month with the conversion of The Cutting Room in Melton Mowbray, where the venue’s former general manager transitioned to become the new publican under the revised operating model.

Despite the significant reduction in directly operated sites, McDowall stressed that managed operations continue to play a vital role in Stonegate’s business model.

“Our managed division remains integral to the overall group structure. We maintain considerable pride in our core managed estate, which comprises successful venues operated by exceptional general managers,” he stated.

The conversion programme forms part of Stonegate’s broader strategic repositioning as the hospitality sector continues to navigate post-pandemic challenges and evolving consumer behaviours.